What is the return on equity


A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is: $400 in stock, $200 in capital surplus, and $200 in retained earnings. What is the return on equity (ROE)?

a) 130%

b) 125%

c) 123%

d) 136%

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Accounting Basics: What is the return on equity
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